1. Internal audit may be able to play a more advisory role
As companies focus not only on mitigating risk but also on taking the right risks, internal audit can play a key role. From sharing business practices it finds through its work across the organization to assisting in special projects and creating useful digital tools for other business functions, internal audit is expanding its value to the organization.
Members of the audit committee network, however, caution against losing sight of the internal auditors’ basic and core activities, particularly as the function has adjusted to a more flexible model for risk assessment and analysis.
2. Staffing challenges
As the internal audit team’s function expands, finding the right mix of talent to serve those roles has become a challenge. The team needs audit professionals as well as those with broader business knowledge and technical expertise. Companies take a variety of approaches, such as rotating professionals from other parts of the business or employing third-party resources.
3. Audit committee oversight
Audit committee involvement with the internal audit function has never been more important. Audit committees can help assist the team’s evolution in the current business environment. Suggested tactics discussed during the meeting include assessments that result in actionable feedback, actively engaging with the chief audit executive and other members of the team, demonstrating to the rest of management the esteem in which the board holds the chief audit executives and using metrics to track the department’s performance.